| **Press Release
Source: Petrol Oil and Gas Inc.**Petrol Oil and Gas Announces Signing a Long-Term Sales Contract for CBM andOther Natural Gas

Tuesday July 20, 9:01 am ET
LAS VEGAS--(BUSINESS WIRE)--July 20, 2004--As part of its ongoing fielddevelopment program, Petrol Oil and Gas Inc. (OTCBB: POIG - News) is pleased toannounce it has signed a multi-year contract for the sale of coal bed methane (CBM)and other natural gas from wells on its Coal Creek project in southeasternKansas. Petrol expects to begin selling gas to Big Creek Gas Field Services, LLCunder the terms of this contract within 30 days.

Petrol's CEO, Paul Branagan, said, "Most of our field efforts this yearhave focused on establishing the gas reserves within our Coal Creek Projectarea. We are all extremely excited to see our coals successfully de-watering andbeginning to produce commercial quantities of CBM gas. Petrol is now in theprocess of transforming from a startup company looking to prove up its play to atrue production and development company."

To date, the company has drilled six pilot wells on its Coal Creek Projectand is finalizing the stimulation process on each well in order to connect themto the Big Creek gas sales line and into commercial production.

Petrol is planning an aggressive drilling program, as its large 165,000-acreleasehold overlying the Cherokee Group of coal seams in southeastern Kansas andsouthwestern Missouri can support about 1,700 producing gas wells. The flatterrain of eastern Kansas offers ease of access for rigs, fracturing equipmentand other development activity; furthermore, the shallow depths associated withthe multiple coal seams being targeted means drilling and production operationscan be performed at a very low cost per well.

Background

Petrol's corporate strategy is focused on the exploration, development andproduction of CBM gas and other producible petroleum products. At present,Petrol's efforts are concentrated in developing their current acreage whilecontinuing to acquire mineral leases in the coal-rich Western Interior Basinthat blankets eastern Kansas and western Missouri. Petrol Oil & Gas hasapproximately 165,000 mineral acres leased, with 145,000 acres in eastern Kansasand 20,000 acres in western Missouri. Four major interstate pipelines crossthrough Petrol's leases providing an available transportation vehicle to gasmarkets in the Northeast.

The Western Interior Basin is one of the largest CBM basins in thecontinental U.S. According to the USGS, CBM accounted for about 7.5 percent ofU.S. annual natural gas production and their most recent estimates indicate morethan 700 trillion cubic feet (TCF) of coalbed methane gas in place, with morethan 100 TCF economically recoverable (USGS: http://energy.cr.usgs.gov/oilgas/cbmethane/index.htm).

Technical, corporate and investor-related information can be found on thePetrol Web site at www.petroloilandgas.com.

 

Forward-Looking Statement: The statements in this press release regarding anyimplied or perceived benefits from well testing or its results, agreementsregarding the exploration of additional mineral acreage, maintaining minerallease rights, continued oil production, extending its rights to explore anddevelop oil or gas, plans to drill additional wells, and any other effectsresulting from any of the above are forward-looking statements. Such statementsinvolve risks and uncertainties, including, but not limited to, discoveringproducible minerals such as oil or gas, the value of testing results, costs,delays, and any other difficulties related to producing minerals such as oil orgas, continued maintenance of the leasing agreement, financing, marketing andsales, risks and effects of legal and administrative proceedings andgovernmental regulation, future financial and operational results, competition,general economic conditions, and the ability to manage and continue growth.

Should one or more of these risks or uncertainties materialize, or shouldunderlying assumptions prove incorrect, actual outcomes may vary materially fromthose indicated. Important factors that could cause actual results to differmaterially from the forward-looking statements we make in this news releaseinclude market conditions and those set forth in reports or documents we filefrom time to time with the SEC. We undertake no obligation to revise or updatesuch statements to reflect current events or circumstances after the date hereofor to reflect the occurrence of unanticipated events.

Petrol Oil and Gas Inc. is quoted on the OTC Bulletin Board as "POIG."

Copyright (C) 2004 Petrol Oil and Gas Inc. All Rights Reserved.
*Contact:

Petrol Oil andGas Inc., Las Vegas

702-454-7318(Investor Information)

http://www.petroloilandgas.com/

or

ECON CorporateServices

Investor andMedia Relations

866-354-5197

Dawn Van Zant

dvanzant@investorideas.com

Trevor Ruehs

truehs@investorideas.com

NaturalGasStocks.com

or

For fulldetails, click here:

www.investorideas.com/Petrol_Oil_and_Gas/NewsReleases.asp***** |
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